Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
1 ~7 Z5 f/ d2 A& L$ M) L5 ^5 ocompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
1 K5 A" p3 a/ n/ H0 L" ?/ f# [crude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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8 }; ^8 g, ]$ \, a7 BRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
- M; i% G  @5 i  S" K5 C+ mA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


9 D2 g+ B6 S) p1. New oil has been found in Canada, Montana, North & South Dakota and
8 l6 _9 l8 E2 l$ Fin the ocean near Brazil. Each of these oil fields has more oil than
( Q9 h: ?' F1 \) X0 qArabia.


2. New natural gas has been found in Pennsylvania and West Virginia.
" b0 q4 C1 G: m2 R. w) ~This is the largest find in North America.


3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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  q# W+ ~1 j- U- N+ X8 J
4. Production of bio-fuels is beginning to reach critical mass. Bio
( q( m, v! \& nfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
: X: K; L1 F  [/ n7 |2 ?to bio-diesel producers. One pork processing plant in Oklahoma is
# d9 F9 h7 h! ]) Q+ A+ h, lproducing 30,000 gallons of bio-diesel per day from pork fat.

9 w! L, K) Y  p" g8 ]
6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
' @6 F/ h! X" B) f% texpected to be built in the future. Much of the energy they produce
% ]( M; W% P5 {. z" kwill replace oil.

* `3 Z8 }1 U% V( w& i! A: f
/ X, e1 X$ k: B) ~3 p7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
; U1 X  R- b; h$ X6 e- care experiencing 20% to 25% better fuel econony with the new
% \& H' J% F  c% s/ R, Dequipment.
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# [/ ?7 f- c4 i8 LAirlines are flying airplanes with bio-fuel. They are finding the bio-
0 P: b! V* r* ], I: w: L) qfuel is cleaner and performs better than jet fuel.
4 i6 e; S. k. m, J& E, F
) Z+ Q- b: n" T1 J
1 V: ?2 Q- u: Q3 Z- i8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
1 W* ~, b1 k2 X6 loil.


9. Coal is being transformed into a clean burning liquid fuel. The CO2
/ {1 j0 w5 S, c5 F, d& `0 d4 H2 [" cproduced as a byproduct is sold to oil companies for injection into
- [) i  q: S3 |/ N1 F  Joil wells.


6 J# e% ~( a# \" I; L4 `10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.

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Each of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
; u$ w( z. e$ g4 y; c( e0 @to control oil prices.
) _  ^& p2 e/ E0 F7 P6 n0 M
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( P  t$ S! F8 B! t2 XWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


9 e1 [6 H, Y2 h: \& V# OThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
. I5 W1 E1 [  K2009 ... FYI-Only